Australian dairy continues to sell in Asia, as cheese producer Bega earmarks the orient for future expansion.
Asia’s appetite for Australian dairy is showing no signs of being satisfied as Bega Cheese outlines plans to up its exports to the orient.
Asian demand for Bega’s dairy products already accounts for 28 per cent of sales, which the company says will be a platform for future expansion.
Domestic customers made up 65 per cent of sales revenue.
As a part of its marketing, the company initiated a «chef-led-selling program» in China and South East Asia which helps teach local pastry chefs how to bake with cream cheese.
Bega chief executive Aidan Coleman said despite Australian wholesale milk prices being driven up due to intense competition, the Asian market remains ripe for the long term.
«There does remain a strong underlying demand for dairy products in Asia,» Mr Coleman said.
«There is a very good base for expansion.»
Bega said it will spend $25 million to increase its milk supply by 25 per cent in the next three years to contend with the forecast growth.
But other geopolitical factors also clouds the company’s future.
Mr Coleman said it was still too early to analyse how Russia’s trade sanctions on Australia produce would impact Bega’s business, but it would continue to monitor the situation.
The outlook came as Bega unveiled its full year results, reporting a $66 million profit in 2013/14, up by 160 per cent on last year.
Net profit was inflated by the sale of Bega’s holdings in Warrnambool Cheese and Butter which was eventually sold to Canadian company Saputo following a three way takeover tussle.
Bega’s stake in Warrnambool Cheese and Butter was worth around $66 million after tax and transaction costs.
BEGA CHEESE REPORTS MASSIVE NET PROFIT JUMP
* Net profit of $66m, up 160 pct from $25.4m in 2012/13
* Revenue of $1.06bn, up six pct from $1.00bn
* Final dividend of 4.5 cents a share, up from 4 cents
Asian demand for Bega’s dairy products already accounts for 28 per cent of sales, which the company says will be a platform for future expansion.
Domestic customers made up 65 per cent of sales revenue.
As a part of its marketing, the company initiated a «chef-led-selling program» in China and South East Asia which helps teach local pastry chefs how to bake with cream cheese.
Bega chief executive Aidan Coleman said despite Australian wholesale milk prices being driven up due to intense competition, the Asian market remains ripe for the long term.
«There does remain a strong underlying demand for dairy products in Asia,» Mr Coleman said.
«There is a very good base for expansion.»
Bega said it will spend $25 million to increase its milk supply by 25 per cent in the next three years to contend with the forecast growth.
But other geopolitical factors also clouds the company’s future.
Mr Coleman said it was still too early to analyse how Russia’s trade sanctions on Australia produce would impact Bega’s business, but it would continue to monitor the situation.
The outlook came as Bega unveiled its full year results, reporting a $66 million profit in 2013/14, up by 160 per cent on last year.
Net profit was inflated by the sale of Bega’s holdings in Warrnambool Cheese and Butter which was eventually sold to Canadian company Saputo following a three way takeover tussle.
Bega’s stake in Warrnambool Cheese and Butter was worth around $66 million after tax and transaction costs.
BEGA CHEESE REPORTS MASSIVE NET PROFIT JUMP
* Net profit of $66m, up 160 pct from $25.4m in 2012/13
* Revenue of $1.06bn, up six pct from $1.00bn
* Final dividend of 4.5 cents a share, up from 4 cents
